Links in “Fines, Penalties, Suits, and Settlements”

The employees and board members of $17.2 million Shoreline FCU were devastated to learn that their beloved manager, Kathryn Sue Simmerman, had been stealing cash from the credit union’s vault for over 16 years. Simmerman, who employed an intricate series of transactions to hide her theft, pled guilty to embezzlement and structuring and has been sentenced to 6.5 years in prison and ordered to pay restitution in the amount of $1.9 million. [1/5/16]

Several companies in the credit-repair industry are anonymously suing the CFPB. The CFPB is asking a federal judge to reveal the names of the companies. The companies say that public disclosure "will surely do irreparable reputational and financial harm." [1/4/16]

The largest player in the St. Paul Croatian Federal Credit Union massive embezzlement scheme has been sentenced to 25 years in federal prison and ordered to pay $16 million in restitution.  NCUA lost $167.2 million when the credit union collapsed in 2010, making it the largest credit union failure in U.S. history. [12/24/15]

Massachusetts Division of Banks told a Massachusetts law firm to register for debt collection. The law firm sued the banking commission for exceeding its authority. Now the Massachusetts attorney general is suing the firm for its unfair and deceptive debt collection practices. The firm is looking forward to being vindicated in court. [12/23/15]

It seems like we’re seeing more and more of these kinds of news stories. Jacqueline Ray, a 30-year President/CEO of the former New Orleans credit union, Ochsner Clinic FCU, has been charged with embezzlement. Ray created 149 fictitious loans and 71 fictitious member accounts over a six-year time frame in order to steal $1 million. [12/22/15]

Cheryl Vickers, a retired vice president, from Houston Police Federal Credit Union has been charged with embezzling $1.2 million over a period of 18 years. Vickers, who was in charge of accounting and IT, had outstanding checks reissued to herself rather than escheating the funds to the state. Vickers had pled not guilty to the charge. [12/21/15]

Illegal visits to consumers at their homes and workplaces, empty threats of legal action, lies about consumers' rights, and unlawful withdrawals from bank accounts exposing consumers to bank fees. Sounds like a recipe for a $10 million penalty for EZCORP of Texas, which operates through 500 storefront locations in 15 states. [12/17/15]

As a result of a previous ambiguous settlement notice that was sent to financial institutions, U.S. District Court Judge Thomas Thrash has stepped in to dictate the manner of communication for the final settlement offer between Home Depot and Mastercard. Thrash ordered that settlement offers may only be extended after the settlement has been fully negotiated and finalized and that the written offers must contain adequate details, advise the class members of their rights, and advise the class members that the offered recovery may be less than what is recoverable through litigation. [12/16/15]

A plaintiff argued the Capital One violated certain provisions of the Fair Debt Collection Practices Act on an account the bank acquired from another bank. The court rule that Capital One is not subject to FDCPA because its collection efforts are related only to debts owed to it (not others) and that debt collection is only part of Capital One's business. [12/16/15]

Former credit union board attorney and former state senator, Tommy Robertson, has pleaded guilty to one count of embezzlement. Robertson stole $375,000 from a residential construction loan that he was handling for the $194 million Singing River FCU in Moss Point, MI in order to pay his own debts. [12/15/15]